From
Tannie Camarata, Cash & Debt Manager
Title
Ordinance authorizing the defeasance, payment and redemption prior to maturity of certain outstanding debt obligations of the City of Grand Prairie, Texas.
Presenter
Diana G. Ortiz, Chief Financial Officer
Recommended Action
Approve
Analysis
On September 16, 2014 the City Council adopted by ordinances the FY 2014/2015 Operating and Capital Improvements Projects (CIP) Budget. The budget includes the calling and defeasance of several outstanding debt obligations of the City of Grand Prairie.
City staff, working with First Southwest Company (City's financial advisor), has been evaluating a defeasance opportunity for several of the City's General Obligation Bonds and Certificates of Obligations. The amount of bonds being defeased is $7,860,000 and defeases the remaining debt of Prairie Lakes Golf Course and Tax Increment Finance district (TIF) #2.
Financial Consideration
The defeased bonds were originally issued for Prairie Lakes Golf Course and TIF#2 projects . The Prairie Lakes debt defeasance is being paid for out of the GO Debt Service Fund. The TIF#2 bonds are being paid for out of TIF#2 operating funds and will allow the City to close TIF#2 later this fiscal year.
The City's Bond Counsel, Norton Rose Fulbright, will bring the final defeasance ordinance to the City Council meeting, November 4, 2014.
Body